A Study on Birla Sun Life Insurance Products
CONTENTS
• What is Insurance • Purpose and its needs • History of Insurance • Fundamental Principles of Insurance.
What is Insurance..???
Insurance is a system of providing financial protection against loss of or damage to an asset.
In this system, a number of people who are exposed to similar kind of risk, agree to pay certain sums of money ( called premiums) to create a common pool of funds. This pool generates a compensation to the individual who suffers an accident or loss of asset.
Purpose and Need of Insurance
FINACIAL INSECURITY:-
• Owner of the asset (or the one who derives benefit from the asset.) is interested in its existence and its remaining in tact • This is so, because loss of or damage to the asset would result in deprivation of benefits derived from it. Loss of or damage to the asset would lead to financial losses of the owner. • Hence there is always a sense of financial insecurity with regard to the asset. • Such a financial concern arises from the fact that every asset is exposed to the risk of being destroyed, lost or damaged due to some accidental occurrence. • Different assets are exposed to different risk
RISK
• Risk means likelihood of damage to asset caused by an accidental occurrences . • Risk to an asset causes financial insecurity to the owner. The asset’s owner therefore, needs protection against such financial loss. • Thus, insurance becomes relevant only if there are uncertainties about occurrence of events leading to losses. No uncertainty, no insurance.
History of Insurance Industry
• Insurance business started with covering marine related risk, namely • Loss of ship by sinking due to bad weather in high seas. • Goods in transit by ship robbed by sea pirates. • Loss of or damage of goods due to transit. • The first Insurance policy was issued in
• What is Insurance • Purpose and its needs • History of Insurance • Fundamental Principles of Insurance.
What is Insurance..???
Insurance is a system of providing financial protection against loss of or damage to an asset.
In this system, a number of people who are exposed to similar kind of risk, agree to pay certain sums of money ( called premiums) to create a common pool of funds. This pool generates a compensation to the individual who suffers an accident or loss of asset.
Purpose and Need of Insurance
FINACIAL INSECURITY:-
• Owner of the asset (or the one who derives benefit from the asset.) is interested in its existence and its remaining in tact • This is so, because loss of or damage to the asset would result in deprivation of benefits derived from it. Loss of or damage to the asset would lead to financial losses of the owner. • Hence there is always a sense of financial insecurity with regard to the asset. • Such a financial concern arises from the fact that every asset is exposed to the risk of being destroyed, lost or damaged due to some accidental occurrence. • Different assets are exposed to different risk
RISK
• Risk means likelihood of damage to asset caused by an accidental occurrences . • Risk to an asset causes financial insecurity to the owner. The asset’s owner therefore, needs protection against such financial loss. • Thus, insurance becomes relevant only if there are uncertainties about occurrence of events leading to losses. No uncertainty, no insurance.
History of Insurance Industry
• Insurance business started with covering marine related risk, namely • Loss of ship by sinking due to bad weather in high seas. • Goods in transit by ship robbed by sea pirates. • Loss of or damage of goods due to transit. • The first Insurance policy was issued in